Buying a new car is a big expense, so you want to be sure you’re getting the most bang for your buck. There are plenty of benefits from buying a car from a dealership rather than buying from an individual sell. Find out everything there is to know about the benefits of buying a car from a dealership and how you can do it right. Here are some tips to help you make a smart purchase when buying a car from a dealership.
Why Should I Buy a Car from a Dealership?
Buying a car from a dealership can have many benefits over buying from a private seller. Here is a closer look at a few reasons why it may make the most sense for you
More Vehicle Selection
Dealerships typically have a wide range of new and used cars to choose from. This means you are much more likely to find the right vehicle for your needs and your budget constraints.
Professional Service
Car salesmen have a bad rep, but the truth is, they are quite knowledgeable about the cars they sell. They can answer any questions you may have about the cars of interest to you. The staff at a car dealership is specifically trained to help you understand their selection and make the right choice.
It’s More Convenient
A car dealership can simplify the process from A to Z. For example, you don’t have to scour the web for the car you want. They have loads to choose from right in one place. Plus, you can get financing options and other services provided to you as well. You won’t have to run around searching for anything.
You’ll Get a Warranty and Support
New cars should come with a warranty and so should certified pre-owned vehicles. You can avoid a lot of hassle by making sure your car has a warranty or guarantee and that you can get the support you need when the car is in trouble. If the car gives out on you before it should, you’ll be protect. This is something you won’t be afford with a private seller.
High Quality
Dealerships have set standards for both new and used vehicles. Cars are subject to rigorous tests and safety standards before they hit the road. Shopping at a car dealership will ensure you get the safest possible car.
You Can Trust Them
A reputable dealership is a trustworthy dealership. They are subject to Canadian laws and must maintain the Consumer Protection Act. The word on the street may be that dealerships are
always looking to make a quick buck and while that may be true, they aren’t conning you out of anything. They are obligated to stand by their warranties.
Can I Buy a Used Car from a Dealership?
There are plenty of used cars to choose from at most car dealerships and they are tested to a fault. You can choose from a range of certified vehicles to ensure you are getting something safe. You can choose the car you want based on pricing, mileage, or any other characteristic that you value.
It’s worth it to buy a used car from a dealer over a private seller as you know you will have a warranty or guarantee. If the car is faulty, the dealership is legally required to make it right. With a private seller, you have a certain amount of time to discover problems and report them. Once that grace period has passed, you’re on your own. This time frame can vary by province but is usually about 30 days.
That doesn’t mean you can shop blindly. You still have to remain alert and verify your purchase well before making any commitments. However, you will be more likely to find what you need and avoid costly issues down the line by purchasing your used vehicle from a certified dealership instead.
Tips on Buying a Car from a Dealership
Do Your Research
Before you head to a dealership, you should do all the research you can beforehand. Know what you can afford, what features you need and want the most, and what the average prices are like in your area. Here are a few more ways you can research adequately before stepping foot in a car dealership.
Read Online Reviews: Online reviews are a great place to start. They’re easy to find and they are honest. You can check websites like Google, Yelp, or Consumer Reports. You’ll be able to find the good the bad, and the ugly! This way, you can choose a reputable dealership to work with.
Check with the Better Business Bureau: A reputable company will be recognized by the Better Business Bureau (BBB). You’ll also find honest reviews on there.
Snoop their Social Media Pages: When customers have feedback, they often share it to the company’s social media pages – whether it’s good or bad. It’s a good idea to peruse these pages before you visit so you can see what people are saying about them and more importantly, how they deal with customer service issues on a public platform.
Visit the Manufacturer’s Website: While the website will be curated with the best car manufacturer wants to show, they will also showcase some of their most trusted dealers. This is a good way to know that the dealer you are working with is on the up an up.
Ask Friends and Family: This is a simple and straightforward way to get reviews from people you know you can trust. Get their recommendations as a starting point.
Ask for Sales and Service Records: You can ask the dealership to show you their sales and service records. This can help determine how long they have been in business and how trustworthy they are.
In-Person Visit: Before you decide to buy anything, take a quick trip to the dealership just to browse. Take a look at how they treat customers and how the staff interacts with one another. This can offer you some valuable insight into how they go about serving their clients.
Set a Reasonable Budget
Setting a budget is key when shopping for a big ticket but so is sticking to it! Give yourself a budget and don’t go over. You can very easily end up biting off more than you can chew if you don’t have a strict guideline set up before you go. Here are some things to keep in mind when setting a budget for your next car purchase:
Factor in All the Costs: To decide what you can afford you need to keep all expenses in mind. This will include more than just the price of the car. Factor in the cost of gas, insurance, maintenance, repairs, taxes, and any other fees associated with purchasing this vehicle.
Review Your Finances: Go over your personal finances and see what makes sense. After adding up all the extra costs, does this car work itself into your budget? Calculate all of your monthly expenses to ensure you can comfortably pay for it. Otherwise, you may turn up short at the end of each month and find yourself kicking off a cycle of debt.
Decide on a Down Payment: The more you put down, the lower your car payments will be. Evaluate what you can afford to put down and how it impacts your payments.
Give Yourself a Range: Cars range in value so it’s best to choose a range you are comfortable with. For example, plus or minus $2,000, or whatever amount you are comfortable with. This will help you avoid overspending.
Calculate Loan Options: If you need to finance your vehicle, calculate what the costs associated with the loan are. Financing rates can vary by car and by dealership.
Stick to Your Budget: Add some buffer to your budget if you are worried about going over, but once you have set a budget, don’t go over. This can get you stuck in a cycle of debt. Remember, your budget is based on what you can afford.
Ask Questions First
There’s nothing wrong with being informed. In fact, you should absolutely be! If you are considering buying a car, here are some important questions you can ask the car salesperson first.
- When will the vehicle be ready for delivery?
- What repair information is available and has the car been accidented?
- Can you please clarify the options and features this car comes with?
- Can you show me the car’s maintenance and repair records?
- What is the total cost of the car, including taxes, fees, and any other charges?
- Can you offer a breakdown of the financing options and interest rates?
- Are there any promotions or discounts you can offer?
- What is your return policy and warranty information?
- Can I test drive the car?
- Can I see a Carfax or vehicle history report?
Asking the right questions can help you understand what you are getting into and ensure you make a sound decision. It is a big expense so naturally, you want to be sure you go about it the right way
Negotiate the Best Possible Price
There is always room for negotiating when it comes to buying a car. It can save you some money – sometimes more than you think. Here are some tips for negotiating for your next car:
Do Your Research First: Before you can negotiate, you have to know the average value of a specific car. Research it in advance so you know how much you can realistically expect to save.
Be Ready to Walk Away: Not all dealers are ready and willing to negotiate. There are several market factors at play. If they have a long list of customers, they may be less likely to negotiate. You have to be ready to walk away if the seller isn’t meeting you halfway.
Offer a Lower Price than You are Willing to Pay: The seller is going to counter your offer so start a little lower to give yourself some wiggle room. Just be sure not to go far too low as this will be seen as though you aren’t a serious buyer.
Remain Calm: Getting riled up can lead to you possibly making a rash decision that will later regret. Stay composed so you can make sound offers and wise decisions. More importantly, keep your cool. You aren’t likely to negotiate a good price if you get upset or treat the sales person disrespectfully.
Negotiate in Stages: Instead of demanding a lower overall price, start by breaking down the total cost. Negotiate the cost of smaller things like upgrades and tire packages. Slowly, you can work your way into saving a little bit more money. This is likely to be more successful than demanding a huge amount in one swoop.
Verify the Car’s History
A vehicle history report will let you know if the car has been accident in the past. It can also let you know if there were any major repairs or if the car has been adequately maintain over the years. Here are a few things to ask for when verifying a car’s history.
Get the Vehicle Identification Number (VIN): The VIN is a 17-digit code that identifies this specific car. It is often next to the serial number on the door of the car. You can also find it on the documentation of the vehicle. This can help you track a complete report.
Get a Vehicle History Report: This type of document can be purchased from companies like CarFax. It will give you insight into all the work done on this car in the past.
Look for Signs of Accidents: Look for signs of accidents, like dents, scratches, and repaint jobs. If a car has been accidented, the value should be lower than the same make and model that hasn’t been accident. This is important to know before you make any offers.
Look at Past Service Records: Part of ensuring the car you are buying is safe is verifying if it has been properly maintain. Maintenance records ensure the vehicle won’t have any hidden dangers.
Check the Title: A clean title means the car has never been accidented, stolen, or damaged and you are not being fooled.
Inspect the Car Before You Walk Away
Never sign a document or walk off the lot without thoroughly inspecting the vehicle – whether it is new or ore-owned. There may be issues that even the dealers haven’t noticed. It’s up to you to verify the car you are leaving with is the car you signed up for. Here are some tips for inspecting a car before you make a purchase:
Check the Exterior: Look at the outside of the car. Check for scratches, chipped paint. Ensure the doors and windows align evenly when opening and closing.
Check the Interior: Test all the interior functions to be sure they work as expected. Verify that the interior is clean, no rips, stains, or damage.
Check the Engine: You may not be a mechanic but you can still pop the hood. Verify there are no leaks or rusted elements hiding under there.
Check the Tires and Brakes: Ensure the brakes work and are not worn by hitting the brakes while in Park.
Check the Suspension: Look for signs of wear on shocks or the suspension system. Rust is a bad sign anywhere!
If you don’t think you have enough knowledge to properly assess the vehicle yourself, bring a mechanic with you to have a proper inspection done. It’s always better to be safe than sorry.
Take It for a Test Drive
Before you head off, take the car for a test drive and ensure all is well and functional.
Make sure you test drive the car before you buy it. This will give you a clearer understanding of how the car runs and whether or not you feel comfortable in it.
You can verify the car’s acceleration, braking, and maneuverability, which can let you know how reliable it is and help you determine whether or not it meets your needs. Plus, you can also see if any of the features have issues.
Test driving a car is a must before you sign anything. Be sure to ask for a test drive so you can get the real feel for your car before you buy it.
Read the Fine Print
As with any contract, you have to read the fine print. Yes, it’s time consuming, but it will save you both time and money in the long run. Before you attach your John Hancock, be sure that everything is as you expected it to be. Once you sign, you will be force to abide by the rules of that contract as it is legally binding. Here are some things to look out for before aligning a contract:
Purchase Price: Verify that the price listed on the contract is indeed the agree upon amount you had previously discuss. Once you sign, that’s the price regardless of any verbal agreements made before.
Payment Terms: Are the terms as discussed? Read through them all to be sure you aren’t signing up for something you don’t like or feel comfortable with.
Trade-in Value: If you’re trading in a car, make sure the trade-in amount on the contract matches what was previously agree upon verbally.
Warranty: Never take anyone’s word for it. Read the terms of the warranty and ensure they are as expected before you sign.
Delivery: Check the delivery date to be sure it works for you before you sign.
Dispute Resolution: In the event of a dispute after the sale, what is the dealer obligat to do? This is all stated in the contract and you should ensure you are happy with those terms before you sign.
Termination Clause: What happens if you decide to terminate your lease? These things do happen so make sure you’re aware of how that will be handle if it happens. It’s always good to be inform. These terms can vary from one dealer to the next.
If there is anything on the contract that isn’t clear to you, ask for clarification. You should never sign something you don’t fully understand or are being force to sign quickly. Take your time, collect your information, and sign when you are ready and satisfied.
How to Get Financing for a New Car
There are several options for financing a car. Here is a closer look at some of the choices you have to get financing for your new vehicle purchase:
Bank or Credit Union Loan
You can get a loan for your brand-new car from a bank or credit union. They can sometimes offer better financing rates than the dealership can.
Dealer Financing
Dealerships can also offer you financing plans through the financial institutions they work with but they often have higher rates than your local bank.
Leasing
If you choose to lease your car instead, there may be different financing options available to you via the dealer, your bank, or your credit union.
Personal Loan
Taking a personal loan is sometimes beneficial. If the rates for financing a vehicle through the dealer are very high, then it makes sense to go ahead and take a personal loan at a lower interest rate instead.